5.9 Local authorities are responsible for scrutiny of their own projects. However, with some exceptions, there has been little or no central scrutiny of local authority procurement beyond the initial funding approval. An exception to this is the Private Finance Initiative (PFI) where local authority projects have been subject to a rigorous approvals process by the Project Review Group (PRG) which was established in 1997 following the first Bates Review1. Box 5.1 sets out further details on the work of the PRG.
| Box 5.1: Project Review Group PRG is the final confirmation step in the award of long-term funding support, known as PFI Credits, to local authority PFI projects. The PRG both oversees and is part of an overall scrutiny and approvals process in awarding such funding. The PRG consists of a two-stage process, and is itself part of a more extensive process of assessment by the authorities themselves and sponsoring departments. This programme of scrutiny provides comfort to the private sector about the quality and maturity of projects being brought to the market, reassures local authorities that there is a fair and equal treatment across sectors and confirms that the project will attract funding from central government before a commitment is made to the major expenses involved in a Private Finance Initiative (PFI) procurement by both public and private sector parties. The PRG is chaired by the Treasury and contains permanent representatives from Communities and Local Government (CLG) and the Public Private Partnerships Programme (4ps).Appointments are made to the panel for a period of 12 months and individuals are selected on the basis of their knowledge and experience of PFI rather than specific departmental representation. |
1 Review of the Private Finance Initiative, HM Treasury, 1997